**1.2. Dimensions of sustainability**

## *1.2.1. Environmental dimension*

Sustainability is understood as the ability to use natural resources and, in whole or in part, to return them to the planet, guaranteeing a good quality of life for those living in the environ-

The sugar and ethanol trade in the international market has suffered from nontrade barriers, which has restricted the expansion of the sector, mainly in countries under development. These barriers are standards and directives related to sustainability, which have been imposed by importing countries. Examples are European Renewable Energy Directive 2009/28/EC [1], which was published in April 2009, and Bonsucro (Better Sugarcane Initiative) [2] which was

The European Renewable Energy Directive 2009/28/EC deals with the promotion of the use of energy from renewable sources and sets out a number of requirements to be followed by all

Bonsucro is a worldwide multistakeholder association created to reduce the environmental and social impacts of sugarcane by designing a standard and program to transform the sugarcane-ethanol sector [2]. The adhesion favors the achievement of high standards of sugarcane

The number of certified plants by Bonsucro has increased each year. Between 2015 and 2016, membership grew by 4.5%, and the number of Bonsucro production certificates by 24%, with 12 new certified mills, including first certifications in Guatemala, Nicaragua, Dominican Republic and Thailand, more than doubling the countries which have Bonsucro certifications

In this sense, this document aims to present the situation of sustainability in the sugarcaneethanol industries of Minas Gerais state, Brazil, using as indicators the criteria required by international legislation, especially those from Bonsucro and the European Renewable Energy Directive 2009/28/EC. The goal is to present how sustainable the ethanol plants are according to those directives, and how much they could and should be. This is extremely important to sugarcane-ethanol plants, since in many moments, they have been held responsible for negative actions against environment and society, and so, the necessity for clarifications and proofs of compliance with standards on sustainability has been increasingly strong. In addi-

tion, it aims to demonstrate how the plants evolved in this topic in the last five years.

The process of man-nature interaction is exploratory since the first inhabitants, and thinking about this relationship without thinking about the transformation of the environment is impossible. This relationship was intensified and improved until in the eighteenth century the Industrial Revolution that began in England spread, reaching the other countries. This in turn stimulated by the accumulation of capital consolidated capitalism, an economic model that dominates until the present day [4]. Since then, natural resources have been explored intensively and the impacts of this unbalanced degradation began to be perceived in the twentieth century, causing concern to environmentalists and taking on increasing proportions [5].

production, far above what is determined by national environmental legislation.

ment and for those who will live.

30 Sugarcane - Technology and Research

last updated in April 2014.

to a total of 9 [3].

domestic and international biofuel producers and buyers.

**1.1. Sustainability in the sugarcane-ethanol sector**

The sugar-ethanol sector is characterized by an activity that uses natural resources intensively. It exerts influence in the generation of foreign exchange for the country, through the production of its derivatives, demanding the attention of public and private entities in the environmental sphere, due to the problems of compaction of the soil, burning of the cane, and emission of gases, which intensify global warming and degrade the environment. The advantages are obtained with the mechanical harvesting without burning, due to the straw that is left in the soil [21, 22].

For the variables that make up environmental sustainability and will be taken as the basis of this study, mention should be made of areas for sugarcane expansion, compliance with legislation, treatment of effluents and waste, and mechanization of the harvest. These variables are of great importance when analyzing the behavior of companies, through the presence or absence of environmental practices internally, as well as meeting the Bonsucro certification indicators, the focus of the study.

Within this context, [6] affirm that an attitude based on immediacy still prevails in business actions, where the management of environmental practices only occurs when there is an imposition of the laws and regulations created in the country, so the importance of evaluating these aspects.

[12] state that economic and social factors are pooled, so that one helps the growth of the other. The economic growth refers to the question of productivity and competitiveness in order to insulate the economy of a particular region in the world market. As the economy grows, people must benefit from better living conditions: health, more education, more housing [26].

Sustainability of Ethanol Sector in Brazil: A Multicase Study

http://dx.doi.org/10.5772/intechopen.71495

33

According to Ref. [12], the economic variable should be rethought in its macroeconomic sense. This is made possible through more efficient allocation and management of resources and a steady stream of public and private investments of endogenous origin aimed at achieving this new way of growing. Factors such as the decline in protectionist barriers between countries, the difficulty of access to new technologies, external and domestic debts, and the income

As can be seen, these regulations do not evaluate the economic issue with business vision, the

Thus, countries' demand for policies that aim a sustainable development has become a necessity for many over the past two decades. In addition to the social question, the fact that the process of environmental regeneration does not keep up with the current consumption pattern has led nations to sign agreements that aim a more equitable and less degraded development [27]. Evaluating the economic bias, the sugarcane harvest is a demanding factor for the plants. The production cost of a sugarcane-ethanol plant that manually harvests cane is 20–25% higher than the other that does not. The use of mechanical harvester increases the efficiency of work and reduces costs with labor [21]. However, as discussed earlier, this factor positively and negatively affects the social and environmental dimensions, and within this context, there is a

In general, the greater or smaller financial performance of companies is what will determine the financial contribution destined to actions that aim sustainability. Therefore, the good functioning of the tripod is allied to good economic results that in turn will return to sustainability, thus forming a cycle [27]. So, these practices heavily rely on the financial performance

The study adopted the multiple case study methodology, with unit analysis, to investigate different practices related to sustainability adopted by four sugarcane plants of different sizes and positions in the sugar-ethanol market, previously selected by a primary and general

The research has qualitative character with descriptive nature. According to Ref. [28] when considering the scope of qualitative research, several approaches are possible, among them: case studies (for a deep contextual analysis of few facts or conditions), detailed interviews, and/or interviews with specialists (for information on influential or well-informed people in an organization or community), document review, and so on. In this work, all these

approaches were combined to carry out the study of multicase.

economic gains of the company, but protectionist vision and social development.

inequalities of developing countries need to be considered.

gain of the environment and a loss for the workers.

of the industry to move forward.

**2. Methodology**

questionnaire.

#### *1.2.2. Social dimension*

The socio-environmental theme, mainly on the focus of sustainability, is increasingly inserted in the different types of markets and involves several stakeholders that drive and direct the organizations to management practices and strategies aimed at minimizing the degradation of the environment, as previously mentioned, and social problems [22].

The social dimension seeks the vision of a balanced society, which seeks a new lifestyle appropriate to the present moment and to the future. It seeks economic development coupled with a significant improvement in the quality of life of the world population, that is, greater equity in income distribution, improvements in health, education, job opportunities, etc. [12].

In the sugar-energy sector, the challenges for social sustainability are related to access to land, working conditions, burning and mechanization of the harvest, and training of employees, linked to the qualification of the workforce. All these factors are addressed in Bonsucro and were evaluated in this study.

Rodrigues et al. [23] argue that monoculture farming practices, such as sugarcane, on large tracts of land have been identified as generating inequalities in the countryside, as well as an obstacle to the social reproduction of traditional populations. The absence of an effective legal system of the Brazilian land structure, capable of regulating and limiting the uses of properties, associated with the availability of cheap labor, has contributed to the expansion of monocultures. These authors also discuss the working conditions in the sugarcane-ethanol sector, addressing issues such as workload, wages, health and safety at work, and within this subject, the most discussed point is the manual harvesting of sugarcane.

After the Brazilian Federal Decree n. 2681, 1998, which determines the complete suppression of sugarcane burning until 2018, throughout Brazil, the harvest mechanization was encouraged and, together with this, the concern of governments and unions about the destination of the workforce will be dismissed from the sector with the growth of mechanization [24]. The change from manual harvesting of burned cane to mechanized harvesting of raw cane has major social implications because a harvester performs the work of 80 to 100 cane cutters [21].

Abreu et al. [25] affirm that it is necessary to carry out programs to requalify cutters who have been dismissed from the labor market to reintegrate them into the labor market and adds that, despite this negative social impact, there is also the positive side of improving workers' health and people living in the sugarcane areas.

#### *1.2.3. Economic dimension*

The economic dimension is often discussed together with the social dimension, as can be seen in European Renewable Energy Directive 2009/28/EC and Bonsucro Certification. Mello et al. [12] state that economic and social factors are pooled, so that one helps the growth of the other. The economic growth refers to the question of productivity and competitiveness in order to insulate the economy of a particular region in the world market. As the economy grows, people must benefit from better living conditions: health, more education, more housing [26].

According to Ref. [12], the economic variable should be rethought in its macroeconomic sense. This is made possible through more efficient allocation and management of resources and a steady stream of public and private investments of endogenous origin aimed at achieving this new way of growing. Factors such as the decline in protectionist barriers between countries, the difficulty of access to new technologies, external and domestic debts, and the income inequalities of developing countries need to be considered.

As can be seen, these regulations do not evaluate the economic issue with business vision, the economic gains of the company, but protectionist vision and social development.

Thus, countries' demand for policies that aim a sustainable development has become a necessity for many over the past two decades. In addition to the social question, the fact that the process of environmental regeneration does not keep up with the current consumption pattern has led nations to sign agreements that aim a more equitable and less degraded development [27].

Evaluating the economic bias, the sugarcane harvest is a demanding factor for the plants. The production cost of a sugarcane-ethanol plant that manually harvests cane is 20–25% higher than the other that does not. The use of mechanical harvester increases the efficiency of work and reduces costs with labor [21]. However, as discussed earlier, this factor positively and negatively affects the social and environmental dimensions, and within this context, there is a gain of the environment and a loss for the workers.

In general, the greater or smaller financial performance of companies is what will determine the financial contribution destined to actions that aim sustainability. Therefore, the good functioning of the tripod is allied to good economic results that in turn will return to sustainability, thus forming a cycle [27]. So, these practices heavily rely on the financial performance of the industry to move forward.
